We suspect these sanctions would have more teeth than some travel bans, but, as we noted previously, it is just as likely to be another epic geopolitical debacle resulting from what was originally intended to be a demonstration of strength and instead is rapidly turning out into a terminal confirmation of weakness.

As we explained earlier in the week,

Russia seems perfectly happy to telegraph that it is just as willing to use barter (and "heaven forbid" gold) and shortly other "regional" currencies, as it is to use the US Dollar, hardly the intended outcome of the western blocakde, which appears to have just backfired and further impacted the untouchable status of the Petrodollar.

...

"If Washington can't stop this deal, it could serve as a signal to other countries that the United States won't risk major diplomatic disputes at the expense of the sanctions regime,"

The US dollar's position as the base currency for global energy trading gives the US a number of unfair advantages. It seems that Moscow is ready to take those advantages away.

The existence of “petrodollars” is one of the pillars of America's economic might because it creates a significant external demand for American currency, allowing the US to accumulate enormous debts without defaulting. If a Japanese buyer want to buy a barrel of Saudi oil, he has to pay in dollars even if no American oil company ever touches the said barrel. Dollar has held a dominant position in global trading for such a long time that even Gazprom's natural gas contracts for Europe are priced and paid for in US dollars. Until recently, a significant part of EU-China trade had been priced in dollars.

Lately, China has led the BRICS efforts to dislodge the dollar from its position as the main global currency, but the “sanctions war” between Washington and Moscow gave an impetus to the long-awaited scheme to launch the petroruble and switch all Russian energy exports away from the US currency .

The main supporters of this plan are Sergey Glaziev, the economic aide of the Russian President and Igor Sechin, the CEO of Rosneft, the biggest Russian oil company and a close ally of Vladimir Putin. Both have been very vocal in their quest to replace the dollar with the Russian ruble. Now, several top Russian officials are pushing the plan forward.

First, it was the Minister of Economy, Alexei Ulyukaev who told Russia 24 news channel that the Russian energy companies must should ditch the dollar. “ They must be braver in signing contracts in rubles and the currencies of partner-countries, ” he said.

Then, on March 2, Andrei Kostin, the CEO of state-owned VTB bank, told the press that Gazprom, Rosneft and Rosoboronexport, state company specialized in weapon exports, can start trading in rubles. “ I've spoken to Gazprom, to Rosneft and Rosoboronexport management and they don't mind switching their exports to rubles. They only need a mechanism to do that ”, Kostin told the attendees of the annual Russian Bank Association meeting.

Judging by the statement made at the same meeting by Valentina Matviyenko, the speaker of Russia's upper house of parliament, it is safe to assume that no resources will be spared to create such a mechanism. “ Some ‘hot headed' decision-makers have already forgotten that the global economic crisis of 2008 - which is still taking its toll on the world - started with a collapse of certain credit institutions in the US, Great Britain and other countries. This is why we believe that any hostile financial actions are a double-edged sword and even the slightest error will send the boomerang back to the aborigines,” she said.

It seems that Moscow has decided who will be in charge of the “boomerang”. Igor Sechin, the CEO of Rosneft, has been nominated to chair the board of directors of Saint-Petersburg Commodity Exchange, a specialized commodity exchange. In October 2013, speaking at the World Energy Congress in Korea, Sechin called for a "global mechanism to trade natural gas" and went on suggesting that " it was advisable to create an international exchange for the participating countries, where transactions could be registered with the use of regional currencies ". Now, one of the most influential leaders of the global energy trading community has the perfect instrument to make this plan a reality. A Russian commodity exchange where reference prices for Russian oil and natural gas will be set in rubles instead of dollars will be a strong blow to the petrodollar.

Rosneft has recently signed a series of big contracts for oil exports to China and is close to signing a “jumbo deal” with Indian companies. In both deals, there are no US dollars involved. Reuters reports, that Russia is close to entering a goods-for-oil swap transaction with Iran that will give Rosneft around 500,000 barrels of Iranian oil per day to sell in the global market. The White House and the russophobes in the Senate are livid and are trying to block the transaction because it opens up some very serious and nasty scenarios for the petrodollar. If Sechin decides to sell this Iranian oil for rubles, through a Russian exchange, such move will boost the chances of the “petroruble” and will hurt the petrodollar.

It can be said that the US sanctions have opened a Pandora's box of troubles for the American currency. The Russian retaliation will surely be unpleasant for Washington, but what happens if other oil producers and consumers decide to follow the example set by Russia? During the last month, China opened two centers to process yuan-denominated trade flows, one in London and one in Frankfurt. Are the Chinese preparing a similar move against the greenback? We'll soon find out.

Higgins: "Not now - then! Ask 'em when they're running out. Ask 'em when there's no heat in their homes and they're cold. Ask 'em when their engines stop. Ask 'em when people who have never known hunger start going hungry. You wanna know something? They won't want us to ask 'em. They'll just want us to get it for 'em!"

We would personally like to thank Mr. Kissinger, Mr. Nixon, and the war-hawks that spent the treasury on that 'Vietnam thing', for this moment in history. The OPEC accords were pure genius, and a distraction from the true state of financial affairs of the U.S. Gov. Inc.. As the dawn of the new era approaches, and the United States is all but dead now, we know that our goals are finally within our grasp and clearly acheivable. The progenitors of the 9/11 false flag are also to be congratulated for taking this in to an accelarated timeline.

Say what? How can you believe this is an accident? Explain why Obama struts around like he's won every round if he isn't successfully doing what he set out to do. Also please explain why Putin didn't do the things he's done earlier?

You are playing poker and you don't know who the sucker is. Do you really believe either Obama or Putin are personally in any danger due to all of this?

Sadly, cunts like Obama see out their time and then make a small fortune prostituting themselves to every banana republic paying top dollar. The only difference between Obummer and Blair (his mentor), is that your guy won't have to travel much to whore himself - by the time he's done fucking up three years hence, you'll have the biggest banana state going.

Then you will loose your bet. Most science done at Harvard and other institutions never gets discussed by the MSM unless it fits the soundbites of the day. All scenarios have been discussed and presented, and this is a probable one. There are, many worse ones, including a regression to pre-industrial agricultural based life. Stone age regressiin of civilization.

The build up to this war is going on right before our very eyes...slowly, methodically and with determination. It's hard to argue that there is even the pretense of diplomacy at this point and since Ukraine is sovereign this is not about "red lines" but "trip wires."

Man, American Dreams, I blew by this several times and almost missed it completely. Talk about currency resets and money materializing out of thin air. When and where the fuck did this currency come from, and who gave themselves the power and the mandate to create a world currency? No wonder they're listening to our phone calls.

It's like those tally sticks TPTB used to start the first banks 300 years ago. This will definitely start the killing, and not soon enough. They'll be sending the troops and coming after the guns tomorrow. You can take that to the bank. Holy bat shit.

The tea party tried it, but had the full weight of the IRS put down on them plus the MSM worked overtime to convince the whole country the movement is racist (even though it's only position is smaller government)

The power brokers at the table right now will not be unseated come hell or high water. The energy of the TP is better spent in local (and in some cases state) politics where it can produce better results. When the SHTF, would you rather have pissed off the federales or have a sheriff worth more than a pinch of coon shit?

Been living in Germany for over twenty years now. Strangely enough, it´s been through the German language that I have been able to talk to people from all over the Earth. Russians, Kazacks, Croats, Greeks, Turks, Poles, Czechs, even Chinese and Vietnamese to name but a few. Besides the religious, and to some extent, cultural differences, it has always been the case that there are vastly more similarities between us all than differences. Everybody wants to provide for themselves and their families. Everyone I have met want good health, happiness, ect. It´s one thing to say this is just normal human behavior, but it quite the experience to see it live, up front, and personal.

It is a gift to have met these people. It does turn you into more of a humanitarian. I find it somewhat disturbing when some people denegrate whole nations based on the actions of a few idiots in power. I dare say that most people who say such things probably have never met, and interacted with, people other than their own nationality. It reminds me of the 1914 Christmas parties the English and the German front line soldiers had with each other during the First World War. Had it been up to the troops, the war would have stopped there and then. But no, they were forced apart by the insane, the powerful, the reckless, and commanded to slaughter each other.

I´d drink a beer and laugh with a Russian. Anytime. Could you hang out with an American and do the same?

fockewulf190 - I've had a chance to travel a bit & most people just want to take care of their families and live a reasonably comfortable and decent life. Been to Russia and to Ukraine and enjoyed sharing meals, a few drinks, and conversations with others.

You mentioned the informal and unofficial truce of Chirstmas 1914. In that there's a valuable lesson. Perhaps one day individual people will decide that they won't just blindly follow what 'authority figures' tell them to do. It takes courage and wisdom to do that. Psychopath/sociopaths end up in postions of power, but it takes the actions of regular people to carry out their orders.

We all know that 99% of the worlds people just want to be left alone, and when left alone from the psychopathic evil killers, we all can get along fine without them. You guys really nail the head here and it is good to remember, all mankind are brothers and sisters. There is no exclusivity in the Law of Brotherhood, or in Love.

>>>The energy of the TP is better spent in local (and in some cases state) politics where it can produce better results.

Cooter's words are wise. If you are going to be involved in political affairs, local is the only way to go; why expend your energy, time and/or money towards achieving a sliver of "representation" in a federal entity which no longer has legitimacy, or any prospect of returning to legitimacy?

If there is a non-violent resolution to the problems of the Sick Man of North America, they lie at the level of state government; that's just the way it is.

"plus the MSM worked overtime to convince the whole country the movement is racist (even though it's only position is smaller government)"

Yep. Been to a few meetings locally and nary a peep was heard about niggers, white hoods, Pro-Life, pro 2nd Amendment, etc.

Painted with a broad brush by the same crowd that decries broad brushes. Oy the chutzpah.

I've debated several asshats who reflexively demonize the TP. They demonize simply because it's a litmus test in their version of the Us:Them dichotomy.

Funny thing, however, is that not a single one of them has a clue what they stand for. They know only what they stand against.

Funnier? They have even less of a clue what they stand for much less why. (Making them dizzy by pointing out their innumerable logical inconsistencies is child's play. It's not difficult to conceive of how they can be for and against the same thing: they've had many politicians show them the way). Cognitive dissonance is a bitch and I slap them with it every fucking chance I get.

This is illustrating that our ONLY weapons are the military and debt, and that is not so effective where we are not head and shoulders above the nation we are targetting.

The US is an energy IMPORTER, and a debt EXPORTER. We don't make shit anymore, and are not running a tight ship at home.

These types of deals that bypass the need for dollars really do us harm. Our only weapon is debt, and if nobody needs debt, we have nothing.

Countries that are resource rich, net producers, or have a decent military can stand back and watch sanctions slowly kill US.

Small, dollar or debt dependent nations we can push around. Not the big boys.

We did have a large presence in international affairs when it comes to trade (SWIFT,G8) but nations are making bilateral deals all around us and we are increasingly ostracized from relevance. And the old players are slowly fading off in the sunset. Stripped of capabilities to produce anything other than debt coupons or some other paper pusher "product."

Countries that are resource rich are like super attractive model.....they NEED powerful protection or else they will be exploited under the thread of violence.

US is like a supermodel smart enough to train in martial arts and carry the best arms money can buy. now the model is aging, but makes money selling protection to other younger models (arabs, africa, etc.).

debt doesnt' matter when you have guns because you steal commodities (oil) from others to pay it back.

Does your credit rating really matter if you are a drug kingpin who also happens to own the bank that can convert assets into cash?

Not sure private property looks too safe in the US with court rulings in CT and other jurisdictions. It is only a contingent right anyway trumped by the law of the gun......if you don't fight for your homestead you don't keep it

Agreed Daddyo. I wish somebody would ask the apprpriate govt talking head upon what basis the US is objecting. One can only imagine the nonsensical bullshit explanation, but I'd like to hear someone try.

I didn't get thru all 6 pages, but those I read say that despite attempts the gold wackos haven't yet corrupted this thread.

And so, an item worth mentioning is this re: oil.

Russia's oil dominance is not at all permanent. They are relying on very old fields for the bulk of their production.

Relying on old fields doesn't mean that you are sitting there at the well and watching a meter and hoping it doesn't fall. That's not how it works. They are "investing". Investing in oil talk means spending money drilling more wells, the output of which will be less than that of original wells (on their first day of flow), but that output will serve to offset the decline in the output of the old wells. This is how the world of oil works. You drill, you flow, the flow starts to decline, you drill more wells to fight that decline.

Russia's old fields are drilling 6000 new wells a year to fight off the inevitable. Yes, they are exploring in the Arctic and yes they are exploring out in the west of their country, but they have a steep decline in the east to offset.

They eventually, soon, won't be able to.

Which should not be interpreted to mean they will lose power. You see, everyone else will be declining, too.

quiet - - - - not supposed to mentioned that. A Rockefeller scientist declared oil as from dead dinosaurs (even at depths far below where such supposed animal remains would have existed.) If the word gets out, the dollar will have to be based on something else - - - like the carbon we exhale, for example.

Oil is found in certain geologies. Certain rock formations deep underground imaged on the surface with all sorts of fancy this and that.

It doesn't appear other places. There are over 100 years of drilling database to teach this lesson. You don't spend millions of dollars drilling unless that rock formation is there.

The oil that may or may not be in that formation can have been put there by a plant urinating for all any petroleum person cares. The origin DOESN'T MATTER. The only place you find it is in those formations. When you run out of those formations, you have nowhere to drill.

Now you are free to spend your money revisiting wells that were declared empty and see if they refilled. Over a period of 100 years, it may or may not surprise you to know that people have in fact done that. They have gone back 10 years later and looked.

There is little hope that there will ever be another election at all. Any election bantering is just that. Barf and baloney bantership. They all know when this is going down and where to go when it happens. What the little puppet minions that were promised underground bunker spots will find out is, they are to be left out with the rest of the sheeple as the missiles come raining down. Stupid flunkies are too stupid to realize the babylonian money-master-things do not want traitors to their own country amongst them. They will use the useless idiots by making them go to war against each other. How anyone could plan to live underground for the rest of a lifetime is just stupid to ponder. War is stupid. No one wins in war except those who send young people to die for nothing or worse, a contrived False Flag Event reason.

ever get the sense obama is cool with the USA being cut down to size (sans petrodollar). he's all about equality of OUTCOME....and believes in a zero sum game....therefore strong nations must be cut down to size. first us....then impose a progressive global tax on wealth and wealth generation....i think it's called a carbon tax.

One way ticket, once again I keep thinking about Obama's comments to Putin about having more flexibility after he's elected. We've all seen and heard the video. I am convinced Obama is purposefully playing right into Putin's hands. He is trying to destroy America.

One way ticket, once again I keep thinking about Obama's comments to Putin about having more flexibility after he's elected. We've all seen and heard the video. I am convinced Obama is purposefully playing right into Putin's hands. He is trying to destroy America.